Pensioner P60 plea to simplify tax
Pensioners should receive P60-style annual statements as part of moves to make the tax system fairer and easier to understand, an independent advisory body has recommended.
The form – called a DWP60 – would be issued by the Department for Work and Pensions, setting out the amount of taxable income received from the state pension and social security benefits in the tax year, the Office of Tax Simplification (OTS) said.
It would parallel the P60 that employers and pension providers give out and would ensure that pensioners know exactly what taxable income they are receiving, the OTS said.
The body’s recommendations have been put to the Treasury for consideration and follow an 18-month review during which the OTS gauged the views of pensioner groups.
The OTS also said that banks and building societies should ask annually if the tax status of a savings account is correct and ensure account holders have necessary guidance on tax on interest.
John Whiting, tax director of the OTS, said: “Pensioners have told us many times how the tax system gets more complex as they get older.
“We have to work within our brief to be revenue-neutral, but we think our recommendations could make a real difference in stripping away complexities and giving pensioners information that will help understanding and make it easier for them to deal with their obligations.”
The Low Incomes Tax Reform Group (LITRG) welcomed the recommendations, which come at a time when landmark changes to pension saving are taking place as up to nine million people are automatically enrolled into workplace pension schemes.
The Government recently outlined its plans for a new “single tier” state pension to bring more simplification to retirement planning.
The LITRG’s chairman, Anthony Thomas, said: “Pensioners on low incomes need far more support than they are currently getting to navigate what has become a highly complex tax system. In this report, the OTS has produced some well thought-out recommendations which should simplify the tax system for many pensioners. We welcome the recommendation of a DWP60.”
Latest posts by Sally - Silversurfer's Editor (see all)
- 6 common suncare mistakes not to make this summer - July 15, 2019
- Thai Fragrant Coconut King Prawn Curry - July 15, 2019
- I’m Over 50, so what are my Life Insurance options? - July 15, 2019
- Do you have this common digestive disorder? - July 12, 2019
- Can You Lend a Paw and Give a Dog A Happy Holiday Home? - July 12, 2019
Leave a Comment!
Community Terms & Conditions
These content standards apply to any and all material which you contribute to our site (contributions), and to any interactive services associated with it.
You must comply with the spirit of the following standards as well as the letter. The standards apply to each part of any contribution as well as to its whole.
be accurate (where they state facts); be genuinely held (where they state opinions); and comply with applicable law in the UK and in any country from which they are posted.
Contributions must not:
contain any material which is defamatory of any person; or contain any material which is obscene, offensive, hateful or inflammatory; or promote sexually explicit material; or promote violence; promote discrimination based on race, sex, religion, nationality, disability, sexual orientation or age; or infringe any copyright, database right or trade mark of any other person; or be likely to deceive any person; or be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence; or promote any illegal activity; or be threatening, abuse or invade another’s privacy, or cause annoyance, inconvenience or needless anxiety; or be likely to harass, upset, embarrass, alarm or annoy any other person; or be used to impersonate any person, or to misrepresent your identity or affiliation with any person; or give the impression that they emanate from us, if this is not the case; or advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.
Nurturing a safe environment
Our Silversurfers community is designed to foster friendships, based on trust, honesty, integrity and loyalty and is underpinned by these values.
We don't tolerate swearing, and reserve the right to remove any posts which we feel may offend others... let's keep it friendly!